Compliance, Legislative & Regulatory Standards

Regulatory Environment - Part 6 (2019)


This eCourse consists of two modules. Module 1 looks in detail at the changes brought about by the Basel III framework in relation to capital adequacy.

Module 2 details different approaches (standardized approaches and internal models approaches) to measure exposure to the different types of risk. Capital adequacy measures the ability of a bank to survive losses under both normal and stress conditions.


On completion of this tutorial, you will be able to:
- Recognize the importance of capital for loss-absorbency purposes and the various components of regulatory capital
- Identify the key Basel III requirements related to capital adequacy (Pillar 1), including the permitted approaches to calculating regulatory capital and the minimum capital ratios
- Recognize the components of the capital adequacy ratio (CAR) and how their values are determined
- Identify the permitted approaches for regulatory capital calculations for Pillar 1 risks
- Recognize the purpose of the output floor

Content Highlight

Module 1: Basel III – Pillar 1 & Capital Adequacy
Topic 1: Capital & Capital Adequacy
Topic 2: Capital Calculations

Module 2: Basel III – Measurement Approaches
Topic 1: Regulatory Capital & Risk-Weighted Assets (RWAs)
Topic 2: Credit Risk Measurement
Topic 3: Market Risk Measurement
Topic 4: Operational Risk Measurement
Topic 5: Output Floor

Administrative Details

Relevant Subject
Regulatory Compliance
SFC:2.50, PWMA:2.50
All Member: HKD765
Non-Member: HKD1,115
Staff of Corporate Member: HKD765